Bill Promises to Rid New York of Bitlicense Charges
New York was one of the first states seeking to embrace extensive cryptocurrency regulation, but it’s been criticized for some of its aspects. Currently, companies coping with cryptos, for example bitcoin, need to apply for a Bitlicense from the state’s Department of Financial Services and pay a commission. On the flip side, crypto companies are not required to get a full money transmitter license.
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The auditors need to ensure that individuals and companies dealing with cryptocurrencies have established security protocols to protect them from theft, therefore increasing public confidence. They have to also verify if crypto companies maintain a finance insuring some of their account holders’ resources from the Securities Investor Protection Corporation or other approved insurer.
The amendments are supposed to protect cryptocurrency investors on a single hand, and decrease bureaucratic and regulatory burdens on crypto companies on the other hand. Bill A09899 was introduced by Ron Kim (D) and co-sponsored from a lot of other legislators. The draft has been called the NY State AssemblyCommittee on Banks a month.
A statement which will turn New York into a friendlier site for crypto entrepreneurs has been released in the state’s Assembly. The draft is intended to “protect” cryptocurrency business action and “prohibit” licensing charges. Its sponsors wish to replace the costly Bitlicense regulations using a licensing plan according to audits. The purpose is to protect investors, while supporting increase in the crypto business.
Can you think New York state legislators will embrace the charge that prohibits licensing fees for crypto companies?
Many crypto-related bills have been introduced in New York in the past couple of months. One of them AO8783, again co-sponsored from Ron Kim, aims to make a “digital money task force”, as news.Bitcoin.comreported. Its principal duty — to provide the governor and the state legislature with advice regarding the possible impacts of the implementation of cryptocurrencies on financial markets. Other texts have defined terms such as blockchain, smart contracts and contracts.
According to the bill, the term “cryptocurrency business action” includes transporting and receiving cryptocurrencies. The professional services of keeping, holding, and maintaining custody or control of cryptocurrency on behalf of all the others will also be covered by the definition. It excludes, but “transactions undertaken for non-financial purposes” under what it calls “nominal quantity of cryptocurrency”.